An Insider At DBS Group Holdings Lowered Their Holding Recently

Insiders were net sellers of DBS Group Holdings Ltd's (SGX:D05 ) stock during the past year. That is, insiders sold more stock than they bought.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for DBS Group Holdings

DBS Group Holdings Insider Transactions Over The Last Year

The CEO & Executive Director, Piyush Gupta, made the biggest insider sale in the last 12 months. That single transaction was for S$4.4m worth of shares at a price of S$35.62 each. So it's clear an insider wanted to take some cash off the table, even below the current price of S$44.13. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 5.2% of Piyush Gupta's stake. The only individual insider seller over the last year was Piyush Gupta.

Piyush Gupta divested 500.00k shares over the last 12 months at an average price of S$14.25. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Are DBS Group Holdings Insiders Buying Or Selling?

In the last three months, CEO & Executive Director Piyush Gupta sold S$84.0 worth of shares. That's not much at all. The net selling is so small that it's hard to draw any conclusions from these recent transactions.

Does DBS Group Holdings Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. DBS Group Holdings insiders own about S$349m worth of shares (which is 0.3% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At DBS Group Holdings Tell Us?

We did not see any insider buying in the last three months, but we did see selling. But given the selling was modest, we're not worried. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the DBS Group Holdings insiders selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for DBS Group Holdings that deserve your attention before buying any shares.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.